Thursday, November 5, 2009

Unlisted non-loss making PSUs will be Listed says Government

NEW DELHI:

The government on Thursday decided that all listed central public sector undertakings (CPSUs) would increase the public holding to 10% and all unlisted profitable state-owned entities should go public.

"All profitable listed CPSEs (central public sector enterprises or CPSUs) should need the mandatory listing of 10 per cent public ownership," home minister P Chidambaram told reporters after the meeting of Cabinet Committee of Economic Affairs here.

The government has also decided that all unlisted CPSEs which have made profit in the past 3 years and have a positive networth should get listed on stock exchanges, he said, adding that CPSEs would enter the market at "appropriate" time.

The decision will have a bearing on mineral major NMDC and MMTC as the public shareholding in these companies is 1.62 per cent and 0.67 per cent respectively.

As per SEBI regulation, listed companies are required to divest a minimum of 10 per cent of the equity to the public.

The minister further said the proceeds of the disinvestment would straight away go to meeting the capital expenditure of the government's social sector programmes, without being routed through National Investment Fund (NIF).

In pursuance of its disinvestment programme, the government had offloaded its stake in Oil India Ltd and NHPC in the current fiscal. It has also unveiled plans to reduce its shareholding in NTPC, Sutluj Jal Vidyut Nigam and Rural Electrification Corporation.